A share has an expected return of 16.71%. The risk-free rate of return is 2.8% and the market risk premium is 10.7%. What is the beta of the share? a. 1.0 b. 1.3 c. 1.5 d. 1.4
A share has an expected return of 16.71%. The risk-free rate of return is 2.8% and the market risk premium is 10.7%. What is the beta of the share? a. 1.0 b. 1.3 c. 1.5 d. 1.4
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
q4 (5.2)
(Hint: Real this question carefully.)
A share has an expected return of 16.71%. The risk-free
a.
1.0
b.
1.3
c.
1.5
d.
1.4
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